Soaring fuel costs hit hard in Longford

A county Longford haulage logistics manager, a local businessman-councillor, and an Independent public representative have urged the Government to quickly reduce tax on fuel to help local people deal with soaring costs.

Families, individuals and business owners have been hit hard by significant increases in the cost of home heating oil and fuel over the past week and a half since the start of the Iran war.

Taxes and levies make up about 40% to 50% of the total price of fuel and VAT on petrol and diesel is charged at 23%.

Read: Longford terrace to remain closed to road users until next week

Cal Jones, a Logistics Coordinator with Barry Express, a Longford based company who provide sustainable and reliable transport solutions, said it is having a significant impact.

"I suppose, put it simply, we buy diesel in bulk and the price has increased over the course of a week now by about 30, 31 cents a litre, excluding VAT and we have a 50,000 litre tank.

"So just for argument's sake, we put 30,000 litres in it every four weeks, you are talking about a four to five figure increase on our fuel bill."

Mr Jones said that increase is going to drive up the price of other petroleum-based products such as maintenance of tyres and other associated costs.

"The cost is probably going to be passed on to the customer, which is going to change rapidly.

"So people are seeing it now, whether they are getting their home heating and oil or gas or whatever it is and they are going to feel it when they go to look on the shelves now in supermarkets.

"And that's just the future and that thing is going to change rapidly."

Read: Former HSE property in Longford town to go up for auction this month

The Edgeworthstown man described our taxes on fuels, compared to other EU countries, as being 'exorbitant'.

Mr Jones stated if they really want to make a material impact for businesses and people to address soaring energy and fuel costs and 'problematic inflation' they need "to have a look at the taxes that are being applied.

The carbon tax rate is currently €71 per tonne of CO2 for fuel or approximately €1.70 to €1.90  for every €20 of diesel or petrol.

Local Fianna Fáil Councillor Seamus Butler, the Managing Director of Butler Manufacturing Services (BMS) has called for the Government to quickly reduce tax on fuel through a combination of tackling excise and VAT.

Read: PICTURES | Several International Women's Day events celebrate Longford's amazing women

"The carbon tax is due to increase on May 1 and that should be completely taken out of the equation for the time being.

"Secondly, the Government is actually making more money with VAT as a percentage on the fuel and they could lower that."

Cllr Butler said the Government could lower excise duty to bring it down and to a reasonable 1.70c-to-1.72c per litre mark.

"They should stop pussy footing around and say they want to  wait a few days.

"The fact is it's like that and they can change it back just as easily when and if it stabilises.

"The government is creaming it in."

Read: Latest book from Longford-based author earns rave reviews

Cllr Butler said if the price surpasses two euro a litre 'the bulk cost' is to the exchequer to bring it back down.

“I mean, every loaf of bread, every chicken, everything is transported by diesel by and large.

"It would really relieve the pressure on farmers and commercial businesses and transport businesses and it would stop it feeding into food inflation and the inflationary cycle that would start to produce.

"If it's done immediately, not pussyfooting around trying to put your finger in the air and see which way the wind is blowing. "

Independent Councillor Mark Casey said he would be raising the issue during Wednesday's local authority meeting and calling on the Government to 'postpone the carbon tax at least on fuel'.

"At the moment, we are paying 65% of fuel costs in tax so if we were, on average, to spend €100 filling a car it should be only €35 if we took the taxes off it.

Read: PICTURES | Last orders: Emotional end of an era at landmark Longford pub

"That is absolutely a ridiculous situation to be in, it doesn't affect the cities and people there who have proper transport systems, who have everything at their disposal.

"They want their carbon taxes, so that they are able to give wealthy people grants to do up their houses. "

"Rural Ireland is suffering, the farmers are suffering, the hauliers are suffering and the people going to work are suffering."